Moscow, 17 September 2007. On Saturday, September 15, the Tender Commission selected the highest competitive bid to purchase WGC-4* stake owned by RAO "UES of Russia" and entitled to the State in RAO "UES of Russia" (the so-called State's Stake). Also today WGC-4 and TGC-1** Boards of Directors priced additional shares offering of these companies.

WGC-4

The deadline for investors to bid for the State's Stake in WGC-4 that totals 29,848,010,945 shares (60.8% of charter capital before the additional emission) was 14 September 2007. Strategic investors showed a keen interest in the State's Stake in WGC-4. The bidders were the world's leading electric power companies.

After all the applications were considered, the Tender Commission selected the highest bid. It was made by Germany's concern E.ON: RUB3.3503 per ordinary share. If RAO "UES of Russia" accepts the proposal, the proceeds from the sale of the State's Stake will total RUB100 billion.

Also today Board of Directors of WGC-4 priced its additional shares offering at RUB3.3503 per ordinary share. After the sale of the State's Stake and additional shares offering, holding of RAO "UES of Russia" in WGC-4 will total no less than 22.5%.

TGC-1

Also today Board of Directors of TGC-1 priced its additional shares offering (925,714,285,714 shares or 24% of increased charter capital) at RUB0.035 per ordinary share. Board of Directors also resolved that, considering the price of offering and principles of emission documents, the number of shares to offer will total 925,714,285,714  shares or 24% of increased charter capital.

While pricing, Board of Directors took into account the competitive bids to purchase TGC-1 stake owned by RAO "UES of Russia" and entitled to the State as well as recommendations of the arranging investment banks ABN AMRO, KIT Finance, and UBS; and TGC-1 equity price dynamics on Russia's stock exchanges.

The deadline for investors to bid for additional emission of shares in TGC-1 was 14 March 2007. Investment community showed a keen interest in purchasing the State's Stake and additional emission of shares in TGC-1.

The highest bid of RUB0.035 was made by OAO "Russian Energy Projects" for the whole volume of TGC-1 additional emission (except for the shares placed in favor of TGC-1 shareholders exercising the preemptive rights to purchase shares in TGC-1). The same company made an offer to purchase TGC-1 stake owned by RAO "UES of Russia" and entitled to the State.

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WGC-4 and TGC-1 will use the proceeds from additional shares offering to finance their investment projects. By 2011 WGC-4 particularly plans to commission new power units with total installed capacity of 2,500 MW at Shaturskaya TPP, Surgutskaya TPP-2, Berezovskaya TPP, and Yaivinskaya TPP.

Under TGC-1 Investment Programme, within next five years the company will implement projects of new power unit construction at Pervomayskaya and Tsentralnaya CHPPs, CHPP-5, CHPP-7 as well as at a number of HPPs on Russia's south-west. The whole volume of new generation facilities to commission will total 2,400 MW

Under the resolution of RAO "UES of Russia" Board of Directors as of 14 July 2007, during the second reorganization the proceeds from the sale of the State's Stake in WGC-4 and TGC-1 will be received by interim "State Holding" and "HydroWGC State Holding" and will be allocated to finance gaps in FGC and HydroWGC investment programmes.

* Wholesale Generation Company ?4 was granted the State registration on 4 March 2005 in Surgut. The company's target structure formation completed on 1 July 2006. WGC-4 comprises Smolenskaya TPP, Shaturskaya TPP, Surgutskaya TPP-2, Berezovskaya TPP, and Yaivinskaya TPP. Andrey Kitashev is director general of the company.

** Territorial Generation Company ?1 was granted the State registration on 25 March 2005. The company started its operation activities on 1 October 2005. TGC-1 generation assets include thermal, hydro, diesel and co-generation power plants in four subjects of the Russian Federation: St.Petersburg, Republic of Karelia, Leningrad and Murmansk Regions. Valery Rodin is director general of the company.